Business plan to manage risk

This is more a medium term approach to managing your business. The market we operate in will be cyclical in its time of boom and bust – how can you structure the business to manage this better. The AHDB Dairy Planning for Profit workshops offer a great way to do this and a chance to work through real financial and physical management and nutritional scenarios for farm businesses.

Assess what the risks are to your business and what you might be able to do to reduce them – a risk register might help you think about the risks your business faces and how you might mitigate them to reduced or eliminate the risks.

Test the sensitivity on any plans you make – what would happen to your cash flow if the milk price fell by 5ppl, feed prices increased by £100/t or you had a disease breakdown.

Start thinking about succession – talking with family members about this can be hard but the sooner the subject is broached the more chance you have of moving forward.

Are you using the best business structure for you? Different types of business structures can provide profitable combinations of skills and resources.  AHDB Dairy has produced a number of template contracts and guidance notes which are available by request via email